A quality of earnings (QoE) report is an analysis of a target’s earnings power produced by an accounting firm, focused on normalising EBITDA, scrutinising add-backs, identifying non-recurring items, and assessing earnings sustainability. QoE reports are prepared on either the buy-side (commissioned by the buyer) or sell-side (commissioned by the seller as part of vendor due diligence).
In Australian sub-$20M sales, sell-side QoE reports typically cost $30,000 to $80,000 and reduce the likelihood of buyer-driven price chips during diligence.